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Techaisle Blog

Insightful research, flexible data, and deep analysis by a global SMB IT Market Research and Industry Analyst organization dedicated to tracking the Future of SMBs and Channels.

Worldwide focus on SMB and Channel Partners market research and industry analysis.

Anurag Agrawal

Symantec Simplifying Security for SMBs With Cloud Solution

Symnatec just announced its Endpoint Protection Small Business Edition 2013 which effectively moves Symantec's flagship security solution for SMBs to the cloud. The solution has an on-premise solution as well giving SMBs the flexibility to start with an on-premise solution or use directly a cloud-based solution with no additional hardware requirements and no special IT staff or training needed.

Techaisle Take
In the SMB space, the trend is definitely moving to the cloud, with SMBs reporting growth in the average number of cloud applications rising from 2 in 2010, to 4.3 last year and expected to hit over 7 this year. Symantec has seen flat revenue in a growing market and needs to take advantage of this trend in cloud services. Security is among the most widely deployed cloud application (~60% of Cloud Users).  Symantec has a very broad portfolio of products and despite a management shakeup and unwanted attention from hactivists; they have been able to maintain stability over the past few years. Having said that, there is always some uncertainty when migrating from one architecture to the next; it will be very important to maintain a solid opportunity for channel partners and they will have to execute well as they make this move.

Symantec needs to ensure that their channel partners are well trained in the difference between between the 2013 cloud edition and the 12.1 on-premise version to avoid any SMB marketplace confusion. Symantec also needs to make sure that their marketing campaigns present the choice of offers as a benefit rather than a hard decision; there are benefits to both cloud and on-premises versions depending on the SMB customer need. We have found that there is a gap in demand from channel partners for cloud security services based on what they are hearing from their SMB customers – Vertical Applications, Security and Storage and Backup solutions top the list of requested applications.

All software companies are wrestling with or implementing cloud services strategies. After Cloud Security, which is a strategic imperative for Symantec, the largest opportunities within Cloud Infrastructure are in Remote Storage & Backup services, unless they step far outside their core business. SMBs recently reported that although their business priorities have remained fairly constant, 77% want vendors to reduce complexity in IT so they can focus on business and customers. It seems Symantec wants to enable that by offering both (all) their services through a common interface which is delivered through the channel and allows remote management of both On-Premises installed base and Cloud versions. If they can do this successfully, it should be a win for both small businesses and channel partners.  Even so, the devil is in the detail, and if they fail to bring both of these to the market successfully they risk losing credibility in their core security market.

Anurag Agrawal

Anurag Agrawal

Citrix: Delivering Work-Life Harmony through Enabling Technology

Delivering Work-Life Harmony through Enabling Technology

Citrix calls it Life Slicing, a form of work-life harmony. And it is on a relentless pursuit of creating continuities between devices, location, apps, data, events and culture irrespective of place, time and environment. Mark Templeton, CEO says that he and his team are busy designing solutions that create customer experiences that will differentiate Citrix from its competitors and in the process reduce cost and increase simplicity for end-users.

It is not an easy objective to achieve. However it is the right objective. Citrix is either a leader in some categories or second in others and a relatively new entrant in yet other areas. It is confident that a focus on delighting the customer with tools that conform to the way end-users work in a multi-modal collaborative world, pining for utmost simplicity will make Citrix the winner.

To achieve its vision, Citrix has set its eyes on six key areas.

    • Social Collaboration: with carefully selected and integrated product line consisting of – GoToMeeting, GoToTraining, GoToAssist, GoToWebinar, ShareFile and Podio. While GoToMeeting was Citrix’s first foray into collaboration (when collaboration was not yet a must have), recent acquisition Podio extends the collaboration to teams.

 

    • Data Sharing: ShareFile is Citrix’s answer to enterprise-grade Dropbox that Citrix hopes will win on security, ease of use and customer service. ShareFile enables employees to send, share, sync files with business features such as follow-me data, access from any device, encrypted in transit and at rest, remote wipe and account locking.

 

    • Enterprise Mobility: a strategy built on Citrix Receiver, a client software app that allows access to data, apps from any device for the unbridled, fast growing BYOD market. Citrix Receiver uses XenApp and XenDesktop to deliver self-service apps and data to over 3 billion devices. Add to it CloudGateway for provisioning that is identity-based, scenario-based and secure serving of data on apps whether the device is windows, mobile, web or HTML5.

 

    • Windows-as-a-Service: an area which is the bread and butter of Citrix, a leader in the space with maximum number of products – XenDesktop, XenApp, XenClient, VDI-in-a-Box. Citrix is furiously working on delivering Windows apps and desktops as a true cloud service. RingCube and Kaviza acquisitions helped Citrix accelerate its presence in the VDI marketplace and eliminated the trade-offs with VDI to allow both shared and fixed desktops to be managed. In addition its HDX technology aims to deliver high-definition virtualization experience and its FlexCast delivery technology makes possible individual user configuration.

 

    • Cloud Networking: echoing the thoughts of many others that the future network will be fast and flat Citrix is betting on NetScaler, ByteMobile and CloudBridge solutions to deliver a network fabric that meets or exceeds the demands of a mobile world with ever-growing bandwidth requirements from devices, data and applications that are in constant motion.

 

    • Cloud Platforms:  staking on its belief that Open platforms will win, Citrix has CloudStack addressing the needs of both traditional and cloud workloads. Specifically, Citrix has also rolled out a Cloud Portal specifically designed for service providers that is a single self-service interface for cloud deployments.



Routes-to-Market for SMBs

The channel comprising of VARs, Systems Integrators (SIs), dealers, resellers and retailers form the essential cogs of an IT vendor’s eco-system that puts products and solutions in the hands of the customers. This is particularly true in the small and medium business market (SMB) where the vast majority of opportunity can only be addressed through the channel. Selling direct is not economical. So it makes complete sense that Citrix is trying to find ways to engage and involve the channel in their cloud efforts. With over 10,000 channel partners globally Citrix is concentrating on three different yet complementary efforts: 1/ Strengthen the VAR and SP channels; 2/ Build strategic alliances; 3/ Reach the SMB channels. The third point is most noticeable as Citrix has launched two new channel programs:

    1. SMB Specialist

 

    1. Cloud Advisor



SMBs have made the leap to cloud-based infrastructure and will rapidly move to multiple services that leverage their investments. The new solution stack is virtual and relatively standalone at this point; the next stage will require integration of more complex applications. As new Cloud Services are rolled out it will not be possible for most SMBs to maintain the internal expertise to make the most appropriate choices. Helping customers emerge without being overwhelmed and providing relevant knowledge of how to effectively apply the new technology will strengthen the SMB customer-channel-vendor relationship. And Citrix is building that channel handbook to enable its partners to be those trusted advisors.

In addition it has developed and released a Partner 360 Dashboard with real-time analytics. Its channel measurement and incentive metrics are based both on fulfillment and influence. Borrowing a leaf from the SMB transformation phenomenon, Citrix is enabling its partners to shift their focus from just operating to implementing and therefore helping them define their respective roles in the cloud.

Techaisle Take

SMBs are going through a transformation in terms of their work style, behavior and IT usage. Citrix is addressing the transformation. SMBs traditionally started off their journey into IT unknowingly using single building block concepts. The process for an SMB growth and its relative steps to absorb IT were steady and predictable. Some SMBs stacked their blocks faster than the others but the steps to get to the top block were always the same.

Enter flat IT. Cloud, mobility, virtualization, managed services have effectively toppled the blocks down in one fell swoop and have laid everything flat on the table. SMBs have moved from enablement to empowerment. Now it is not a race to the top, but how can an SMB reach its full potential in the shortest period of time. The process of an SMB’s growth and steps to absorb IT are no longer steady and predictable.

The SMBs are looking for value shift, moving from enablement to empowerment. They have moved from individual productivity to group productivity. Work from anywhere, anytime is more prevalent today than ever before. SMBs are no longer clustered in one location. It took 10 years for percentage of SMBs allowing telecommuting to double itself but only 3 years to again double to reach 77% in the US. The average Anurag Agrawal - Techaisle - Global SMB, Midmarket and Channel Partner Market Research Organization - Techaisle Blog - Page 104 citrix-apps-blog-300x200 number of locations has gone up from 1.05 to 1.85 in 5 years. Another important number to note – 15% of SMB employees always work from home, that is, 11 million SMB employees.  SMB executives have also accepted work at home culture. And they see it as a benefit for the company as well as employees. 46% agree that it benefits companies, 37% say that tasks can be accomplished from anywhere. And 28% say that the technology used by employees is more advanced than that offered by workplace. It is known as Consumerization of IT but it has implications on how IT is absorbed and how IT vendors offer support and training. SMBs use multiple devices & applications to collaborate when traveling or telecommuting, many of which did not exist 5 years ago. Mobility is at the SMB doorstep.

To address the SMB transformation Citrix has it all: Collaboration, Data sharing, Mobility, Virtualization and even flavors of managed services. In the process, it is introducing simplicity and mobility along with driving down the cost. But what about the routes-to-SMB-customer? This is where Citrix has some work to do. Recognizing the shortcoming, Citrix has launched a somewhat thought out campaign to serve the needs of the channel partners that cater to the SMB community. What it already has in its favor is the tail wind. But any fellow traveler can easily testify that the tail wind can turn into a head wind. Citrix has its work cut out for itself, making sure that the channel partner tail wind is maintained.

Anurag Agrawal
Techaisle

Anurag Agrawal

VMware: Serious SMB Focus, Re-ignited SMB Strategy

A new and restructured VMware took the stage at VMworld 2012 amid major changes driven by commoditization of “must-have” virtualization technology within enterprises and a cultural change where mobility is driving many technology decisions. Although the most important announcements included the vCloud Suite, the software-defined datacenter and the death of vRAM pricing, there were several other pronouncements that were especially relevant to SMBs, most significantly vSphere 5.1.

VMware has always offered solutions that were appropriate for the SMB market, but have not been considered a priority as the enterprise business segment, without real competition, kept VMware busy, growing and profitable. However, over the past two years SMBs have begun to grow in importance for VMware driven by several factors:

  • The Enterprise segment has become increasingly virtualized (saturated) and starting to look more limited in growth prospects; the remaining high growth areas relegated  to emerging market countries and increasing penetration of workload yet to be virtualized within the mature economies

  • SMBs have overcome their initial hesitation with cloud-based services and become increasingly comfortable with using emerging Cloud technologies and Cloud Computing in general

  • Mobility and use of multiple devices anytime and from anywhere is becoming increasingly important within the SMB segment

  • Consultants and channel partners serving the SMB segment have evangelized the advantages of virtualization that enable SMBs to reduce IT management costs, provide better security and disaster recovery and improve application accessibility

  • After a slow start, Microsoft made a strong move into the virtualization space at low price points, expanding the awareness of virtualization within their SMB base

  • Microsoft’s huge base of channel partners found it easy to market Microsoft’s virtualization solutions to their customers


As a result of the above factors, SMB market segment began to appear like a growing and untapped opportunity deserving serious consideration and potentially aggressive investment.

SMB Virtualization Opportunity

Our research shows that this consideration has plenty of merit: a recent Techaisle survey of 3,300 SMBs in US, UK, Germany clearly shows that virtualization is now among the top 3 relevant technologies for small and mid-market businesses (SMBs) and rapid growth is expected to continue. Typically, SMBs begin their virtualization journey with either desktop or server virtualization and based on that success, move to other virtualization technologies. This relatively newfound interest among SMBs bodes extremely well for VMware and its channel partners.

Anurag Agrawal - Techaisle - Global SMB, Midmarket and Channel Partner Market Research Organization - Techaisle Blog - Page 104 vmware-blog-14


 There is no doubt that SMB Server Virtualization is a huge opportunity. Techaisle survey of 3,300 SMBs in US, UK, Germany clearly shows that opportunity is real. If VMware does not move aggressively, others will move in rapidly.


Anurag Agrawal - Techaisle - Global SMB, Midmarket and Channel Partner Market Research Organization - Techaisle Blog - Page 104 vmware-blog-21-1024x950


Important VMware SMB Announcements

vSphere 5.1 (there are two versions) with vSphere Essentials Kits for SMBs for up to 250 employees on a single site or vSphere 5.1 with vSphere Acceleration Kits for SMBs with 250+ employees across two or more sites were by far the most significant product announcements for small and mid-market businesses as they are targeted directly at the mid-market space in terms of functionality, price, ease of installation and deployment.

Pricing starts at US$495 for vSphere Essentials and goes up to US$4,495 for vSphere Essential Plus that includes  vMotion (for live migration of virtual machines, no shared storage), endpoint security, high availability and fault tolerance, data protection and replication features , vSphere Storage Appliance. With this new version, VMware has simplified the installation of storage appliance and a one-to-one relationship between vCenter and vSphere Storage Appliance is no longer a requirement.

vSphere Acceleration Kits includes everything that is available in vSphere Essentials plus IT operations management, application inventory and patching, powerful and efficient resource management, and policy-based automation. The pricing starts at US$6,995 per 6-CPU license.  And a new solution, vSphere Standard with Operations Management, includes all the enhanced features of vSphere Standard plus vCenter Operations Manager and vCenter Protect for operations management, application inventory and patching in one bundle for $10,000 per 6 CPU license.

For those SMBs that are tip-toeing into the virtualization arena, there is VMware Go Pro (first announced in January 2011) which is a web-based service to deploy, manage and maintain virtualized environments, and lowering barriers to entry. It offers the ability to convert physical servers to virtual servers through a browser. In fact cloud-based virtual machine capability is a new feature. Incidentally, 30 free endpoint licenses of VMware Go Pro is included in every new purchase for vSphere Essentials or Essentials Plus Kit purchases until December 15, 2012.

VMware View is VMware’s VDI solution and its upcoming Horizon Suite beta is the answer for centralized application and data management addressing the needs of SMBs that are using VDI as a fast-path to mobility.

Techaisle Takeaway

Right Direction by VMware in Addressing the Needs of SMBs

With these virtualization solutions VMware is potentially addressing important needs of SMBs considering virtualization including simplified management, backup and recovery, and security.  The solutions allow SMBs to take advantage of existing investments by relying on the same management interfaces used to secure physical environments. These are the types of characteristics that SMBs have embraced wholeheartedly in other areas of Cloud-based Services, which led to rapid adoption and overthrow of the expensive and overly-complex Client-Server approach to IT.

Included in the offering is a backup and recovery solution for complete data protection for virtual machines and virtual machine level replication. In addition the storage appliance (now included in vSphere Essentials Plus and all vSphere Acceleration Kits) allows SMBs to easily and cost-effectively deploy shared storage even in remote and branch offices. VMware vShield Endpoint helps in strengthening security for virtual machines while delegating antivirus and anti-malware agent processing to a dedicated secure virtual appliance.

There were other solutions that were announced by VMware, primarily targeted at the enterprise segment, but we believe, with some modifications are equally relevant for the SMBs. These are software-defined datacenters and Cloud Operations Services.

Enterprise Targeted Solutions Equally Relevant for SMBs

Software defined datacenters: While relatively unknown to SMBs at this stage, this future mainstay will become highly relevant within the next 3 – 5 years. It is therefore essential for VMware to keep in mind the specific design points and requirements of SMBs in addition to the larger accounts as it develops its product and strategy for software-defined-datacenters. SMBs continue to be concerned about the increasing complexity of IT and 77% have expressed the concern in a recent survey. While provisioning VMs (virtual machines) may only take a few minutes, when storage and networking components are added, the proposition begins to become more complex, requiring more time and resources.  Based on how SMBs are adopting cloud-based services and looking at some of the new, innovative services platform technologies that are gaining quick acceptance in the market, there seems to be some space in the market for a plug-and-play “base datacenter package” that would be appropriate for SMBs in this area.  In a nutshell, this base package should allow rapid provisioning of the key components of the environment (compute, storage, and network) as a virtual datacenter. As SMBs expand operations and grow regionally, the ability to quickly re-configure new and existing locations by shrinking, extending or moving virtual machines along with networking to meet elastic demand requirements would be a very valuable proposition.

Tools for the SMB Trusted Advisor

VMware Cloud Operations Services:  currently positioned as a trusted advisor for CIOs of enterprises on a cloud journey.  It also seems the market is in real need of a simplified and cost-effective version of the services that will be equally relevant for the SMB segment. Techaisle surveys have found that in the rush to implement Cloud Services, users especially among Small Businesses, are beginning to rely much more on independent IT Consultants as their new source of advice. Also, based on the ability of vendors to market, sell and deliver these services completely through a digital channel, SMBs are turning directly to vendors for their advice. As discussed in a previous post, the critical issue, now more than ever, is to be the trusted advisor early in the SMB’s lifecycle and establish the relationship. VMware will also have to empower its channel partners with new training modules, competencies and financial incentive to offer advisory services, and come in and get these new offers up and running fast and right on the first try - the sure fire way to start a long term relationship with the SMB customer.

vRAM Pricing Still Ruling for Service Providers

Finally, it is not out of place to say that although vRAM pricing is dead, it is still the licensing metric for the VSPP (channel program). vRAM pricing for service providers is a different model - whereas vRAM for perpetual was a limitation on the entitlement, in VSPP it is the metric. Although the model allows service providers to offer their customers the benefits of opex-based “pay-as-you-go” service it may leave some smaller-sized service providers wanting more.  These service providers should work closely with VMware to determine possibles solution for their SMB customer needs. For example, in cases where,

  1. SMB customers on a perpetual license wanting to move from an on-premise to a hosted solution specially if they would be operating below the RAM caps

  2. SMB customers electing to use a mixed virtualization environment in a hosted model


As SMBs continue to adopt cloud services and Infrastructure-as-a-Service (IaaS) becomes mainstream for SMBs, VMware needs to develop a strategy that encourages the hosting providers to address the SMB segment by having same consistent pricing, that is, per processor for both on-premise and hosted models. Until that happens, VMware is potentially opening the doors wider to competing products.

Concluding Remarks

It is quite apparent that VMware is committed to serving the needs of the SMB segment clearly demonstrated by its well thought out product enhancements, packaging and roadmap.  Centralized management and control, ability to “plug in” branch offices, keeping costs manageable and allowing existing IT staff to focus on measurable value are huge value propositions to SMBs. It is also a new service that SMB focused service providers can offer by leveraging these centralized management tools and better support their customers.  It is an excellent opportunity for the channel, which is being rapidly disintermediated by the rise of vendor direct online marketing, new consulting competitors and redeployed internal IT resources, which we have covered in depth in another post. A recent Techaisle study of over 1600 Channel Partners shows many of these partners are struggling for lack of serious value-added opportunities and could benefit from VMware’s new SMB offers.

Anurag Agrawal
Techaisle


Anurag Agrawal

Dell Executes on its plan for end-to-end Desktop Virtualization

In a small gathering of analysts and media , Dell showcased and unveiled its latest end-to-end desktop virtualization capabilities. The announcement was carefully crafted to time with the VMworld event being held in San Francisco next week. During the entire two hour “Chalk Talk” by Dell team, SMB was mentioned only three times and mid-market design point (Dell’s new mantra unfolded at its analyst event earlier in the year) was never mentioned at all. However, the importance, urgency, messaging and relevancy were clear and precise.

The announcements included Dell EqualLogic intelligent datacenter storage arrays with SSD tier & spinning media, Dell Wyse zero clients, and Dell DVS Enterprise reference architectures including vStart for VDI Reference Architecture – VMware View, Dell Mobile Clinical Computing - VMware AlwaysOn Point of Care™ Reference Architecture and New Dell DVS Enterprise –VMware Mobile Secure Desktop Reference Architecture.

Simplified, Manageable, Secure End-to-End Desktop Virtualization solution that SMBs will appreciate

Kicking off the discussions, Rafael Colorado, Marketing Director, Dell Desktop Virtualization Solutions, said, “Customers have to face complexity and try to implement desktop virtualization themselves and get stuck. Dell is trying to isolate components that create complexity”. The statement summarizes the technology pain-point being experienced by SMBs in adopting emerging technologies. Techaisle’s July 2012 survey of 3300 SMBs in US, UK, Germany found that 72 percent of SMBs want vendors to simplify technology and 61 percent are ignoring some technologies because they are finding the decision making to be too complex.

Anurag Agrawal - Techaisle - Global SMB, Midmarket and Channel Partner Market Research Organization - Techaisle Blog - Page 104 technology-complexity Hence, simplification in any form will be a step in the right direction. The same survey also showed that Virtualization is among the Top 5 relevant technologies for SMBs but is also among the Top 5 technologies most complex to understand. Dell is serving up simplification in the form of single SKU, an end-to-end virtualization solution that is manageable, secure, innovative, and intelligent and with one contact phone number. vStart for VDI Reference Architecture – VMware View runs as a workload on top of the Dell vStart stack, offering flexibility and efficiency enabling the organization to focus on driving enhanced business agility and delivering IT assets – rather than building an infrastructure. vStart for VDI 50 is already available from Dell for no-stress SMB deployments. The vStart for VDI 50, is a pre-configured solution for SMBs scaling from sub-100 up to 250 users per system and vStart for VDI 1000 for businesses that scales from 1000 up to 1,000 – 4, 000 users per system. In fact, Techaisle’s SMB VDI Adoption and Trends study shows that of all the SMBs planning to deploy VDI, 37 percent will have between 20 to 50 users.

Drivers of SMB Desktop Virtualization adoption and Dell’s solution components

The drivers of desktop virtualization are many, but the top five as mentioned in recent Techaisle survey of 1200 SMBs in the US are:

Anurag Agrawal - Techaisle - Global SMB, Midmarket and Channel Partner Market Research Organization - Techaisle Blog - Page 104 drivers-of-vdi1


SMBs are planning to use VDI to reduce costs, better disaster recovery, and access of applications from anywhere and on any device in a secure infrastructure. Reduction in costs and better disaster recovery are considered to be inherent outcomes of virtualization deployments.

Dell EqualLogic Intelligent Data Center Storage Solution

Dell EqualLogic new storage arrays (available in Q4) are its densest hybrid storage arrays for tiered I/O in a single appliance. Through built-in auto-tiering algorithms, it creates automatic load balancing and puts out the most frequently used data on SSDs thereby “providing 360 percent improvement in array access and 75 percent reduction in latency lowering the manageability for desktop virtualization deployments”.  For a mid-market business, and specifically for verticals such as healthcare, financial services and even manufacturing these would be of great advantage. The solution component helps in cost reduction and application availability (1 and 2 above in chart).

Dell Wyse Zero Clients

Dell Wyse zero clients P25 and P45 designed specifically for VMware View implementations provides better manageability, security and mobile access to data and applications. The P25 uses Tera 2 processor and can move 50 million pixels to the screen. It supports Ethernet, wireless and fiber unlike other zero clients. The P25 can support 1920 x 1280-pxiel resolution for two displays or 2560 x 1600-pixel resolution for one display. The P45 can be used to support up to four displays. The solution component helps in application availability, mobile access and secure data (3, 4 and 5 above in chart).

Dell DVS Enterprise - VMware Mobile Secure Desktop and Dell Mobile Clinical Computing - VMware AlwaysOn Point of Care™ Reference Architectures

Dell and VMware have also jointly validated the Dell Mobile Clinical Computing for VMware AlwaysOn Point of Care™ offering with VMware View. Powered by Dell’s Mobile Clinical Computing solution, this architectural design incorporates a number of features to ensure data integrity as well as minimal disruption in computing service to the caregiver, including: constant monitoring, secure rapid access, single sign on and constant data replication across sites. With this validated architectural design, healthcare organizations now have unparalleled desktop and application reliability and availability – and secure rapid access from virtually any device.

Conclusion

SMBs are quickly recognizing the need to adopt virtualization within their businesses, however, they also find it complex to understand and implement. Complexity comes from inherent questions SMBs ask themselves and their advisors: What can virtualization do for us? Which virtualization technology is best for us? How should we implement it so that we get the most benefits in the shortest period of time? Who can help us implement it? Nevertheless as per Techaisle research, VDI market in the US alone will be US$588 million in 2016 growing at 41 percent CAGR.

Most SMBs rely on their local channel partners for maintenance & management of their IT infrastructure as well as for advice on new IT purchases. Therefore, Dell created a new Desktop Virtualization Solution competency based on feedback from  its network of 100,000 channel partners to provide them appropriate training and skills to sell and manage VDI for their local SMB customers.

In the meantime, with its latest desktop virtualization offerings Dell is continuing to execute on its vision of an end-to-end, best-of-breed solutions company.

Anurag Agrawal
Techaisle

Research You Can Rely On | Analysis You Can Act Upon

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